Intesa Sanpaolo opens its first branch in Turkey

INVEST IN TURKEY
THE REPUBLIC OF TURKEY PRIME MINISTRY
INVESTMENT SUPPORT AND PROMOTION AGENCY OF TURKEY
newsletter
ISSUE 15
MAY 2015
Turkey breaks ground for its first
nuclear power plant
Construction of the Akkuyu
Nuclear Power Plant, the first
of its kind in Turkey, has started
in the country’s Mediterranean
province of Mersin. Part of
Turkey’s increasing efforts to
reduce costly energy imports, the
first of the plant’s four reactors
– each capable of generating
1,200 megawatts (MW) of power
– will reach initial operational
status by 2020.
The Akkuyu project will cost
USD 22 billion and is being built
by the Russian state-owned
nuclear
energy corporation
Rosatom, employing the latest
technologies and safety features.
Speaking at the ceremony,
Turkish Minister of Energy
INVEST IN TURKEY
Taner Yıldız highlighted the
widespread use of nuclear
energy around the world and
Turkey’s need for self-sufficiency
in electricity generation.
“Nuclear power plants account
for 11 percent of global
power generation. Had it been
operational during the past ten
years, the Akkuyu Nuclear Power
Plant would have supplied
28 percent of Turkey’s total
electricity demand and saved
USD 14 billion in fossil fuel
imports,” Yıldız noted.
Meanwhile, Rosatom Head Sergei
Kiriyenko said that the project
was of strategic importance
to Turkish-Russian relations.
“We are open to working with
Turkish firms not only for the
Akkuyu project, but also in third
countries,” he remarked.
Looking
to
diversify
its
sources of energy and reduce
dependence on imports, Turkey
plans to have three operational
nuclear power plants by 2023.
A French-Japanese consortium
will build the country’s second
nuclear power plant in Sinop on
the country’s Black Sea coast,
while a third plant is in the
planning stage.
invest.gov.tr
NEWS FROM TURKEY
Arda Ermut appointed
ISPAT President
Arda
Ermut, the Vice
President of the Investment
Support and Promotion
Agency of Turkey (ISPAT), has
been appointed the agency’s
new president by H.E. Prof.
Dr. Ahmet DAVUTOĞLU, the
Prime Minister of Turkey.
Also acting as the head of the
Public-Private
Partnership
Department of ISPAT during
the former President Ilker
Ayci’s term, Ermut started out
as a project director at ISPAT
in 2007 and led the teams in
charge of the Gulf countries and India. He was promoted to
Chief Project Director and Advisor to the President in 2010.
Intesa Sanpaolo opens its first
branch in Turkey
The Italian lender Intesa Sanpaolo
has opened its first branch in Istanbul,
Turkey. To focus solely on corporate
banking, Intesa Sanpaolo will mainly
provide support for Italian companies
doing business in Turkey.
Turkey’s largest R&D center
launched by Ford Otosan
Ford Otosan, the JV established by Turkey’s Koc Holding and
American carmaker Ford, has launched Turkey’s largest single-site
research development (R&D) center in Istanbul’s Sancaktepe.
The TRY 68 million (approx. USD 25 million) center will employ
1,200 engineers as well as the latest technologies in motor vehicle
and engine design, including a CAVE virtual reality system, a first
for Turkey’s automotive industry.
Speaking at the opening ceremony, Koc Holding Board Member
and Chairman of Ford Otosan Ali Koc said that Ford Otosan was its
parent company’s commercial vehicle production hub in Europe.
“The company exported USD 300 million worth of engineering
services to other Ford divisions in the last 5 years,” he noted.
Ford Otosan directly employs 10,000 people in Turkey, and
operates three vehicle assembly plants and an engine plant.
Yemeksepeti acquired for
USD 589 million
“Intesa Sanpaolo’s branch opening in
Istanbul is an entry to a very important market lying on a
critical trade and investment junction between Europe, the
Middle East, and Central Asia. Backed by the synergy created
by our banking institutions in Italy and other countries, the
newly established Turkish branch will widen Intesa Sanpaolo’s
know-how to better provide Italian,Turkish,and third companies
with customized solutions,”according to Gaetano Miccichè,Head
of Intesa Sanpaolo’s Corporate and Investment Banking Division.
German online food delivery giant
Delivery Hero has announced the
acquisition of Yemeksepeti, Turkey’s first
online food delivery company, for USD
589 million, sealing the largest such
deal in Turkey’s internet industry to
date. The record-breaking deal is also
the largest-ever acquisition in the online food-ordering sector.
Another Italian banking company, UniCredit, is active as a
shareholder in Turkey’s Yapi Kredi Bank, the country’s fourth
largest. There are around 1,200 Italian companies in Turkey
as of the end of 2014, with bilateral trade hovering around
USD 20 billion.
Founded in 2001, Yemeksepeti is active in Turkey and 7
Middle-Eastern markets, processing about 3 million orders per
month. The complete acquisition of Yemeksepeti increases the
Berlin-based Hero Delivery’s reach to 32 countries.
Yemeksepeti will continue to be run by its experienced team
under CEO and Co-Founder Nevzat Aydin, who joins Delivery
Hero as a senior advisor.
SECTOR INSIGHT
ENERGY & RENEWABLES
Turkey plans for 120,000 MW of installed capacity in 2023, a third of which will be
generated from renewable sources.
Turkey has become one of the fastest growing energy markets in the world in parallel to its economic growth registered over
the last ten years.
Economic expansion, rising per capita income, positive demographic trends and the rapid pace of urbanization are the main
drivers of Turkey’s increasing energy demand, estimated to increase around 7 percent per annum until 2023.
One of the latest steps the Turkish government has taken towards a more competitive energy sector, the establishment of an
energy stock exchange is now complete and the Energy Markets Business Corporation (EPIAS) is soon to begin operating. EPIAS
will not only enhance the liberalization of the market but will also ensure transparency and help maintain a healthy balance
between supply and demand.
In addition to having a huge domestic market, Turkey is strategically located between major energy consumers and suppliers,
thus serving as a regional energy hub. The existing and planned oil/gas pipelines, the critical Turkish straits and promising finds
of hydrocarbon reserves in the country itself give Turkey increased leverage over energy prices and reinforce its gateway status.
The renewable forms of energy --hydro, wind, solar, geothermal and others -- are abundant in Turkey and encouraging policies
backed by favorable feed-in tariffs are expected to increase their share in the national grid in the coming years. The Turkish
government has made it a priority to increase the share of renewable sources in the country’s total installed power to a
remarkable 30 percent by 2023, while taking the energy efficiency concept to realization by enacting laws that set principles for
saving energy, both at the individual and corporate levels.
As important as the renewables are in Turkey’s energy strategy in the coming years, technologies such as waste processing and
reducing of greenhouse gasses are also often cited together with this new form of power generation as critically important
supplementary practices. Sustaining the environment by resorting to renewable resources is accompanied by such measures and
regulations, either in effect or soon-to-be in effect, -- lowering carbon emissions, increasing generation/transmission efficiency,
and promoting the use of waste management technologies.
The sum of these factors have profoundly shaped Turkey’s energy sector and turned it into one of the most attractive investment
destinations in the world. In line with the implementation of investor-friendly regulations and the high increase in demand, the
Turkish energy sector is becoming more vibrant and competitive, attracting the attention of more investors for each component
of the value chain in all the energy sub-sectors.
NGPI investing in Turkey’s geothermal potential
New Generation Power International (NGPI) of Chicago, IL, has announced plans to invest in Turkey’s energy potential by installing
and operating a 100-megawatt (MW) geothermal power plant.
The American company will form a JV with three local firms – Yilsan Holding, Mineks International, and DCM Energy – for the
USD 400 million investment, which will initially go online by the end of this year with a 10-MW output. The plant to be located
in northwestern Turkey will reach full capacity before the end of 2017.
EVENTS & ORGANIZATIONS
ISPAT Team at Work
G20-WAIPA Conference - Istanbul
Having assumed the position of presidency in two leading international organizations working on increasing economic cooperation, the
Group of Twenty (G20) and the World Association of Investment Promotion Agencies (WAIPA), Turkey successfully hosted a large gathering
of government officials, investment promotion agencies (IPAs), company executives, academia and business associations at the G20-WAIPA
Conference on Foreign Direct Investment held in Istanbul.
Aiming for greater cooperation to facilitate cross-border investments for sustainable development, the event featured Turkey’s Deputy Prime
Minister Ali Babacan, UNCTAD Secretary-General Mukhisa Kituyi and many other high-ranking speakers.
PPP Healthcare Summit - Istanbul
Turkey’s public-private-partnership (PPP) model healthcare projects, dubbed the “city hospitals,” are to receive significant amounts of
investment in the coming years, according to Turkey’s Minister of Health, Mehmet Muezzinoglu. Speaking at the PPP Healthcare Summit held
in Istanbul, Muezzinoglu said that 32 city hospital projects would be operational by 2018. 17 of the tendered city hospital projects will be
built at a cost of USD 10 billion. The tender process is ongoing for projects in Urfa, Denizli, Kütahya, Denizli, Samsun, and Tekirdag. 10 more
projects are awaiting approval,” the Minister of Health stated.
The Turkish Business Seminar - Tokyo / JAPAN
The Turkish Business Seminar, hosted by ISPAT, Turkish Embassy in Tokyo, the Foreign Economic Relations Board (DEIK) and the Japan Institute
for Overseas Investment (JOI) was held in Tokyo on April 15, 2015 with the participation of more than 150 people. JOI President Junichi Kondo
and Ahmet Bulent Meric, Ambassador of Turkey to Japan, opened the seminar.
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Newsletter prepared by ISPAT web team
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